European Commission addresses Cypriot tourism sector support amid regional instability

Cypriot Member of the European Parliament (MEP) Michalis Hadjipantela formally requested European Commission assistance to support the tourism sector, citing widespread booking cancellations and economic uncertainty caused by geopolitical instability in the Eastern Mediterranean and the conflict in the Gulf. He specifically asked for the activation of financial support mechanisms and greater flexibility regarding state aid rules to help affected small and medium-sized enterprises. In its official response, the European Commission confirmed that Cyprus possesses existing tools for support. Specifically, the Commission noted that funds from the 'THALIA 2021-2027' Cohesion Policy program are available for small and medium-sized businesses, including those in the tourism industry. The Commission further explained that the Republic of Cyprus has the authority to request a reallocation of these funds by modifying the program. It was also confirmed that the Commission is currently in contact with relevant Cypriot authorities to facilitate potential aid measures. MEP Hadjipantela welcomed the response as a meaningful step toward ensuring the stability of the local economy.